Bitcoin’s $90K Dream Shatters: Liquidations Loom!

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Bitcoin briefly surged toward the $90,000 level earlier today, but the move was short-lived. 🧨 A fleeting spark in the darkness, now extinguished by the cold, unyielding hand of market forces.

New liquidation data shows that the rally was less of a breakout attempt and more of a liquidity grab. BTC was tapping a dense cluster of short-liquidation levels before reversing sharply. 🐦‍⬛ A dance of desperation, where every step forward was met with a cruel twist.

Bitcoin hits a liquidation wall at $90K

Liquidation heatmap data shows that a major concentration of short liquidations sat between $89,500 and $90,500. This level formed one of the strongest resistance pockets on the chart. 🧱 Like a fortress built of shattered hopes, it stood unyielding.

As soon as BTC wicked into this zone, the market saw a wave of forced buy-backs from short positions – but there was no follow-through. 🕺 A performance without a punchline, leaving investors in stitches of frustration.

This aligns with behavior typical of a liquidity raid, where price reaches a level only to fill orders and reverse once liquidity is consumed. 🤡 A sly trick, a fleeting touch before the market’s hand slams shut.

Also, the 6H chart confirms this: a large cluster of short-liquidation bubbles was triggered around $90K, followed by immediate selling pressure, pushing BTC back under $87,000. 📉 A quick flash, then a plunge into the abyss.

Daily chart shows declining momentum and heavier downside liquidity

On the daily liquidation map, most of the high-density liquidity sits below current price: 🧭 A treacherous terrain where the weak are devoured.

  • $84K-$82K-major long liquidation cluster 🧨
  • $80K-$78K- next deep liquidity pocket ⚠️
  • Minimal high-volume short clusters above $90K 🌫️

This imbalance implies that market makers and large players may find more incentive to push BTC downward toward deeper liquidity, where liquidations are more profitable. 🤑 A game of chess where the pieces are pawned for profit.

The MACD indicator also shows that momentum has been weakening for over a week, and the MACD lines remain firmly below zero. 🌀 A spiral of despair, spinning faster each day.

Why the Bitcoin price breakout failed

Three factors likely contributed to the rejection: 🧠

Liquidity exhaustion: Once the $90K short-liquidation band was cleared, there were no additional liquidity pools above to sustain a continued move. 🧊 A well that ran dry, leaving only dust.

Overleveraged longs: The daily chart shows multiple stacked long-liquidation levels beneath price, increasing vulnerability to a downside sweep. 🏗️ A house of cards, trembling in the wind.

Momentum divergence: MACD shows waning buying strength even before the move. 🚶‍♂️ A runner who’s lost his breath, yet still forced to sprint.

Together, these dynamics made the rally unstable from the start. 🧨 A fire that burned too bright, too fast.

What to watch next

If BTC continues to drift lower, the first reaction zone is around $84K, where long-liquidation clusters begin to thicken. 🧱 A trap door waiting to open.

A break below this level could accelerate a move into the $82K-$80K pocket, the largest pool of liquidity currently visible. 📈 A black hole, swallowing all hope.

Additionally, for any meaningful upside attempt, BTC would need to reclaim liquidity back above $87.5K. Also, it must sustain momentum beyond $90K, where fresh short interest would need to build again. 🔄 A cycle of hope and despair, never ending.

Final Thoughts

  • BTC’s tap of the $90K level was a liquidity hunt, not a sustainable breakout. 🎯
  • The largest liquidation pools now sit below price, increasing the risk of a downward expansion. 🐍

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2025-12-18 02:42